TLDR
- Bitcoin has risen above $104,000, approaching its all-time high of $109,000
- US-China trade tension easing with both countries reducing tariffs for 90 days
- The Taker Buy-Sell Ratio has reached 1.02, a level that previously predicted BTC rallies
- Realized price continues to rise, showing investors are accumulating at higher prices
- Softer-than-expected US inflation data has bolstered Federal Reserve rate cut expectations
Bitcoin (BTC) has climbed above the $104,000 level, following a double-digit increase over the past week. The cryptocurrency is now trading at around $104,271, narrowing the gap to its all-time high of $109,000.
This recent price movement comes amid positive developments in the macroeconomic landscape. Most notably, there has been an easing of trade tensions between the US and China, with both countries agreeing to reduce tariffs on certain imports and exports.
The US will reduce its tariff on Beijing from 145% to 30%, while China will lower its retaliatory tariff from 125% to 10%. Both reductions will last for 90 days.
Market participants have responded positively to these policy shifts. This signals renewed risk appetite across both traditional and digital asset markets.
Bitcoin’s rally over the weekend reflects this optimism. Analysts have identified key technical indicators pointing toward rising buyer strength.
Technical Indicators Support Further Growth
One such indicator gaining attention is the Taker Buy-Sell Ratio. This metric measures the ratio of market buy orders to sell orders and has climbed to 1.02.
Historically, similar levels have coincided with major turning points in Bitcoin’s price movement. The metric reached comparable highs during the late 2022 lows between $15,000 and $20,000.
It also appeared in October 2023 as Bitcoin broke through the $30,000 resistance level. According to analysts, this recent breakout above the 1.00 line reflects an increase in aggressive buying activity.
Market takers are once again asserting short-term control. This suggests upward momentum may persist in the near term.
However, analysts also caution that these same conditions have previously been followed by volatility spikes. These spikes have marked both the start and reversal of market trends.
In a separate analysis, Bitcoin’s realized price, which reflects the average purchase price of all circulating BTC, continues to rise. This indicates that investors are increasingly accumulating BTC at higher prices.
This trend differs from previous cycles, where a reversal in the realized price preceded steep corrections. Analysts attribute the current rise to institutional inflows, particularly through spot Bitcoin ETFs and corporate balance sheet purchases.
Economic Data Supports Crypto Markets
Recent economic data has also played a role in Bitcoin’s price movement. US consumer price index data released Tuesday came in below expectations.
This has eased concerns over the inflationary effects of trade tariffs. The softer-than-expected inflation data has bolstered Federal Reserve rate-cut expectations.
While these developments may give the Federal Reserve more room to adjust interest rates, concerns over potential reacceleration in inflation remain amid tariff risks.
Analysts caution that the central bank would likely wait for clear signs of economic deterioration before cutting rates. They suggest the Fed is prioritizing its inflation-fighting credibility over short-term economic support.
Still, Bitcoin and major altcoins registered gains as traders grew optimistic that the Fed might eventually have room to ease interest rates.
The altcoin market has shown even stronger performance. Ethereum surged 8.7% to $2,667.30, while XRP rose 3.6% to $2.5869.
Solana jumped 7%, Cardano advanced 4.8%, and Polygon added 6%. Among meme tokens, Dogecoin surged 9.5%, while $TRUMP rose 8.4%.
As institutional players continue to allocate capital into Bitcoin, the realized price trend suggests that the ongoing rally may have more room to extend.
With macroeconomic support from tariff reductions and on-chain indicators flashing green, the setup remains favorable for Bitcoin’s continued strength in the near term.
BTC currently trades at $104,271, just under 5% away from its all-time high of $109,000.
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